Afternoon summary

There appear to be problems in the discussions between the Tories and the Democratic Unionists over the Ulster party’s 10 MPs supporting a minority Conservative government. As Henry McDonald reports, senior DUP sources have told the Guardian this afternoon that the negotiations “haven’t proceeded the way we would have expected.” They added that the DUP “can’t be taken for granted” in ongoing discussions with the Conservatives. The Tories want a “confidence and supply” arrangement with the DUP that would guarantee that they get the DUP’s support in confidence motions and key budget votes. They can probably survive without a deal, because they still outnumber all other opposition parties in the Commons apart from the DUP by two, and because the DUP would not vote against them in a division that could lead to Jeremy Corbyn becoming prime minister. But passing legislation without a deal would be much harder. McDonald reports.

In Belfast other DUP sources said that “backbiting from Tory backbenchers” against their party had stiffened their resolve to “dig in.”

They said complaints by Tory MPs about having to deal with the DUP had gone down badly.

“They attempted to bounce us into a deal on Saturday night and then we had the backbenchers saying that we were unsavoury etc.

“There is also a feeling within the DUP that if we can get extra spending in Northern Ireland in, say, the local NHS to bring down waiting lists here, then there would be a barrage of complaints from English, Scottish and Welsh Tories over the special treatment our part of the UK was receiving.

“Conservative high command ought to stop their backbenchers whinging about the DUP and show our party some respect,” the DUP sources added.

Although one suspects Mr Hammond believes in a soft or partial Brexit — remaining the single market and/or customs union — he stuck to Mrs May’s programme, albeit with a plea for a very gradual transition. “We’ll almost certainly need an implementation period, outside the customs union itself, but with current customs border arrangements remaining in place, until new long-term arrangements are up and running,” he said. Hard Brexit with a soft landing, in other words.

Those hoping for radical change will be disappointed. It was an illusion to think that a weak Conservative government would take the risk of changing tack, even with its leadership woes. Although it is very much business as usual, it is welcome to see the chancellor back and able to urge some caution about what lies ahead.

There has been a worrying lack of expectations management with British voters in terms of what lies ahead for Brexit. Too many ministers default to the Panglossian “it’s all going to be fine” approach, while offering scant detail. Mr Hammond’s input is welcome, therefore, and should not be dismissed.

The Scottish Government has published a written request from DUP leader Arlene Foster asking that it restrict gay couples from Northern Ireland converting their civil partnerships to same sex marriages in Scotland, the Press Association reports.

The publication comes days after Foster said she had no recollection of sending such correspondence to the administration in Edinburgh.

The letter, written in September 2015 when Foster was Stormont finance minister, urged then Scottish local government minister Marco Biagi to exclude Northern Ireland-based couples from legislation that enabled people in civil partnerships to convert those unions to same sex marriages.

Biagi tweeted about the existence of the letter in the wake of the General Election, amid increased UK-wide focus on the DUP’s conservative stance on social issues such as gay marriage.

The Press Association story goes on:

But in a radio interview last week, the former Stormont first minister denied sending such a letter.

“I’m not quite sure what he [Biagi] was referring to but it certainly wasn’t a letter from me and I’ve no recollection of a letter from me,” she told BBC Radio Ulster’s Inside Politics show.

“If I’d written to him officially as minister of finance or something like that around recognition laws here in Northern Ireland, I have no recollection of it. I certainly didn’t write in a personal capacity.”

The letter dated September 4 2015 released by the Scottish Government on Tuesday is signed by Mrs Foster.

It was a follow-up to a letter from her predecessor as finance minister, the DUP’s Simon Hamilton. Hamilton’s letter has also been made public.

The letters did not cite moral or political objections to the proposed legislation in Scotland, but highlighted potential legal issues.

They said complications could arise from couples having “dual status”, where they are recognised as civil partners in Northern Ireland but as married in Scotland.

Foster wrote: “I’m sure neither of us would wish to place same sex couple in an uncertain legal position, which maybe difficult and expensive to resolve.”

Bradley to announce provisional decision on Murdoch's takeover bid for Sky by next Thursday

Karen Bradley, the culture secretary, has said that she will announce her provisional decision on whether or not to allow Rupert Murdoch’s 21st Century Fox full control of Sky by Thursday next week. In a statement, she said that she has now received reports from Ofcom assessing the takeover on the grounds of media plurality, Fox’s commitment to broadcasting standards and whether its executives are “fit and proper” owners. She has also received an assessment from the Competition and Markets Authority (CMA).

Bradley said:

The decision before me now, which I am required to take acting in a quasi-judicial capacity, is whether - taking account of the specified public interest grounds - it is, or may be the case, that the merger operates, or may be expected to operate, against the public interest and therefore whether or not to refer for a fuller phase 2 investigation by the CMA. I will consider these reports in detail before coming to an initial view on whether or not I am minded to refer the merger.

I will aim to make my initial ‘minded to’ decision, publish the CMA and Ofcom public interest reports - in line with the requirements under the Enterprise Act 2002 - and return to parliament to make an oral statement by Thursday 29th June. There will then be an opportunity for representations to be made before I take a final decision.

Gerard Coyne claims he is victim of a Unite 'stitch-up'

Gerard Coyne has issued a statement about his sacking. (See 2.47pm.) He says he is the victim of a “kangaroo court” and of a “stitch-up”.

I have been notified by email that I have been sacked from my position as West Midlands regional secretary of Unite the union following a disciplinary hearing held at Unite’s London office on June 15th.

I am deeply disappointed but not surprised at my dismissal. When you are in a kangaroo court, you are rarely surprised by the outcome.

I have held the post for 16 years and no complaint was raised during the hearing about how I carried out that role.

However, during the disciplinary process I was informed that union rules require a regional secretary to be “the general secretary’s representative in the region.”

It was implied that because of the way I criticised Len McCluskey during the campaign I could not fulfil that role any longer.

Seven charges were originally made against me that it was claimed amounted to gross misconduct. They consisted of such heinous crimes as publicly criticising and challenging Mr McCluskey’s decisions in leaflets, newspapers and social media. All related to my conduct during the general secretary election campaign.

Three of those charges I managed to knock out before the hearing and three were dismissed at the final hearing. The final one related to to an alleged technical data breach, which it was claimed had damaged Unite-Labour party relations.

This preposterous trumped up charge has been used to indict me - even though the returning officer from Electoral Reform Services had already ruled that there was no breach of the rules.

It was always clear to me that the charges were nothing more than a stitch-up. My real ‘crime’ was having the audacity to challenge Mr McCluskey in the general secretary election that he called unnecessarily.

Coyne also said that he would be appealing against the decision to dismiss him and that he expects the certification officer to order a re-rerun of the general secretaryship election.

Gerard Coyne sacked by Unite

Gerard Coyne, the senior Unite official who challenged Len McCluskey for the leadership of the union but narrowly lost, has been sacked, my colleague Rajeev Syal reports. Coyne was told that he must leave the union after 28 years for the alleged misuse of data.

Lunchtime summary

Mark Carney, the governor of the Bank of England, has subtly mocked Boris Johnson’s claims about the benefits of Brexit in a speech arguing that leaving the EU is a threat to the economy. (See 10.40am.)

Our Labour manifesto come out [in the speech] absolutely loud and clear. So it was fair and managed migration, it was about a jobs-first Brexit, it was about no deal being a very, very bad deal for the UK. [Hammond] has even said today he would look remaining within the customs union.

Labour also claimed the speech showed how the Tories were split over Breixt. But Iain Duncan Smith, the Conservative former work and pensions secretary and a leading figure on the leave wing of the party, said that he was happy with what Hammond said in the speech. He told the World at One:

I thought the speech was fine. It was straightforward - not much to disagree with in it.

[In] four years time the question arises, of a general election coming up, I’ve then got to make a choice; do I let one of my very able younger colleagues take over or do I do what William Gladstone did, quite a while ago, he became prime minister when he was 82, I think, way beyond my years. Winston Churchill did in his mid seventies. I mean these things happen, some of the brightest and most interesting people in British politics recently have been relatively old. You remember Bernie Sanders in America as well. I think age is a surety, if you feel old. I don’t feel old. I feel young and energetic and I’m very much up for a contest.

Sadiq Khan, the mayor of London, has written to Theresa May making recommendations for how the public inquiry into the Grenfell Tower fire should be run. Among other suggestions, he said that an interim report should be published now, and that steps should be taken to stop relevant paperwork being destroyed.

It is also important that immediate steps are taken to preserve evidence if there is a risk of it being destroyed by those holding it. The relevant authorities, whether pursuant to an inquiry or to a criminal investigation should be considering whether those powers of seizure need to be exercised now as a matter of urgency. I strongly suggest that immediate legal advice is obtained as to how material should be preserved and the process of that material being reviewed for the purposes of disclosure to core participants so that there are not a lengthy delays relating to disclosure to core participants, as have occurred in other recent inquiries.

I would also urge you to require that there will be an interim report published this summer. Not only is this crucial for community confidence, but it will allow for the swift implementation of any urgent steps that need taking as regards fire safety in similar buildings across the country.

Labour has demanded answers from the government after leaked letters appeared to show ministers were repeatedly warned that fire regulations were not keeping people safe in high rise blocks like Grenfell Tower. As the Press Association reports, shadow housing secretary John Healey has written to Communities Secretary Sajid Javid demanding a formal response after the BBC said the letters show ministers were warned that people living in high rises were “at risk”. The dozen letters, sent by the all-party parliamentary fire safety and rescue group in the aftermath of a 2009 fatal fire in Lakanal House, south London, warned the Government “could not afford to wait for another tragedy”, according to Panorama. The parliamentary group wrote in March 2014:

Surely ... when you already have credible evidence to justify updating ... the guidance ... which will lead to the saving of lives, you don’t need to wait another three years in addition to the two already spent since the research findings were updated, in order to take action?

As there are estimated to be another 4,000 older tower blocks in the UK, without automatic sprinkler protection, can we really afford to wait for another tragedy to occur before we amend this weakness?

Although technically the chancellor did not breach any collective government positions on Brexit or the economy, it is inconceivable that [Hammond] could have delivered such a speech before the botched general election a fortnight ago.

Mr Hammond took aim at a series of Mrs May’s core beliefs: the need to bear down heavily on migration, the damage caused by globalisation, the ease with which the public spending taps can be turned on, and the need for a full “transition” deal rather than Mrs May’s “implementation” phase.

Before the election he would have been blocked from giving such an address and it had been expected that he would be removed from his post. Mrs May’s fall from grace, which has not yet halted, has given him new power and he is determined to use it to try and stop Britain making, in his view, catastrophic mistakes on Brexit.

The Institute of Directors has welcomed Philip Hammond’s Mansion House speech. Allie Renison, its head of EU and trade policy, said:

Business leaders will welcome the pragmatic approach taken when talking about Brexit in his Mansion House speech. There were no big surprises, but the focus on jobs and the economy is a step towards shoring up shaky business confidence. The chancellor reiterated the government’s intention to leave the EU customs union, which always seemed likely in the long-term, but crucially showed some flexibility on pushing for an orderly process to do so. The emphasis on the need for an early agreement on transitional provisions – as opposed to sorting this out toward the end of the negotiations – is positive. Firms will need to know, at the latest by next summer, whether there will be substantive changes to trade and migration arrangements in order to have time to activate any contingency plans.

Number 10 has sent out a (characteristically dull) read-out from this morning’s cabinet meeting. Here it is. It’s from a spokesman.

In this morning’s cabinet meeting, ministers discussed upcoming parliamentary business, including tomorrow’s Queen’s Speech which heralds an historically important two-year session to help deliver the legislation for a successful Brexit.

Ministers also discussed the awful events of the past week. The prime minister expressed her appreciation of the police and emergency services for their bravery and professionalism.

On Grenfell Tower, the secretary of state for communities and local government updated cabinet on the efforts to ensure everything is being done to help victims’ families and other survivors, as well as looking ahead to the longer-term recovery effort. On the tragic incident at Finsbury Park, the prime minster and home secretary discussed the importance of ongoing government work in reviewing its counter terrorism strategy and ensuring that police and security services have the powers they need.

The chancellor of the exchequer provided cabinet with an update on the economy and public finances, emphasising the underlying strengths of the UK economy and setting out the importance of making the case for a market economy, sound money and growth as well as prioritising rising productivity.

The secretary of state for Northern Ireland also provided an update to progress on talks to restore power-sharing institutions.

It is day 2 of the talks in Belfast aimed at restoring the power sharing devolved government in Northern Ireland. Day 1 has been described as “reasonably constructive” by one senior Irish official.

Both the Irish foreign minister, Simon Coveney, and the Northern Ireland secretary, James Brokenshire, are not at Stormont for the all-party discussions today. Coveney is holding Brexit talks at the EU in Brussels while Brokenshire has commitments in London. However, the parties, most notably Sinn Fein and the Democratic Unionists, will continue talking today.

One of the substantive issues on the table is Sinn Fein’s demand for an Irish Language Act that would put the gaelic language on a par with English, which would be a similar outcome to the situation already pertaining in Wales, where the Welsh language has parity to English. Sources at the talks say this morning that aspects of Ulster Protestant culture rooted in terms of “respect” for things like Ulster Scots might also be built into the legislation to make the language act more acceptable to unionists.

The other major area of contention is legacy or how to deal with the past crimes and atrocities of the Troubles. It appears that, while draft legislation may be possible, the ideas formulated at the talks will be put out to public consultation across Northern Ireland and in particular to a whole range of victims groups. By doing this, it is believed the ‘sting’ will be taken out of the legacy issue and it won’t become a deal breaker at Stormont.

Meanwhile those other talks - the ones between the DUP and the Tories - aimed at creating a minority Conservative government go on in London today. They also cast a shadow over the Belfast negotiations with Sinn Fein and others keeping one eye on what the outcome of the DUP/Tory discussions may bring forward.

In terms of the Belfast talks though the clock is ticking, with the 29 June deadline fopr the restoration of power sharing looming ever closer.

Sir Vince Cableis leaving open the option of only serving as a caretaker leader, the BBC’s Norman Smith reports.

Cable is 74. If the next election is in 2022, he will be just days away from his 79th birthday when it takes place. Jo Swinson, who is 37 and who has ruled out running for the leadership this time, is running for the deputy leadership and hinted in her statement on Sunday that she would go for the top job in due course. Cable could end up running on the understanding that before 2022 he would step aside for her.

Vince Cable announces he is running for Lib Dem leadership

Sir Vince Cable, the Lib Dem business secretary in the coalition who has just been re-elected to parliament after losing his seat in 2015, has announced in a blog for Lib Dem Voice that he is running for the party leadership.

Here is an extract.

There are big opportunities ahead. The Conservatives are in disarray and in retreat. The Labour Party outperformed expectations but complacently believes that ‘one more heave’ will see it into office. But an economic policy based on offering lots of free things lacks economic credibility and will be found out. Investing in infrastructure, rather than borrowing for everyday running costs is credible. There is a big space in British politics which I am determined that we should occupy.

The contest will take place with the largest membership electorate in our party’s history. We should be ambitious about increasing our number still further and in particular attracting young people to our cause. I welcome the more diverse party and parliamentary party we now have and will give priority to promoting diversity, an issue I championed as a minister and with some success in business leadership.

The party has survived five difficult years of Coalition government and the disadvantage of the current unreformed voting system. We are now growing again and the political winds are moving in our favour. I believe I can, as leader, offer the energy, dedication and drive, as well as experience, to help – with you – to make our party a credible contender for power.

With Jo Swinson having announced on Sunday that she is not standing, the bookmakers now have Cable and Norman Lamb (who has not yet said whether he will stand or not) as the favourites.